Utah DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're investing in STRs in Park City, long-term rentals in Salt Lake City, or multifamily units in St. George, our DSCR loans
offer Utah investors flexible, income-based financing. These loans qualify you based on the property’s cash flow, not your personal financials. We assess whether the rental income is strong enough to support the loan independently. Utah’s high tourism traffic and rapidly growing population make it a strong market for real estate investing. DSCR loans let you move quickly on new opportunities, scale your portfolio with fewer limitations, and bypass the burdens of traditional income verification.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for Utah real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is structured for real estate investors who want to qualify using a property's rental income rather than their own W-2s or tax returns. If the property produces enough income to cover its loan obligations, the borrower may be eligible with little to no personal documentation. This approach is perfect for investors scaling through LLCs or focusing on STR-heavy markets. In Utah, where places like Salt Lake City, St. George, and Park City attract consistent demand, DSCR loans support fast, flexible financing for growth-oriented investors.
How is DSCR calculated in a typical loan scenario?
Utah real estate investors calculate DSCR by dividing a property’s net operating income (NOI) by its annual debt service, which includes principal, interest, taxes, and insurance. For example, if a Utah property earns $90,000 in NOI and carries $75,000 in debt, the DSCR is 1.20. That 20% margin is attractive to lenders. While most Utah lenders require a minimum DSCR of 1.00, stronger ratios—particularly in markets like Salt Lake City, Park City, and St. George—can improve financing terms. Understanding how DSCR works in Utah helps investors evaluate property performance and scale their portfolios with greater confidence.
What is considered a good DSCR ratio for Utah investors when applying for financing?
In Utah, a DSCR of 1.20 or higher is typically considered strong. While a 1.00 DSCR may technically meet minimum lender requirements, a 1.20 ratio shows your rental property generates enough income to comfortably cover its loan obligations. That kind of financial buffer improves approval odds and can lead to better interest rates or fewer reserve demands. Whether you're investing in Salt Lake City, Park City, or St. George, understanding what makes a good DSCR in Utah is essential for building a scalable and finance-ready portfolio.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
In Utah, DSCR loan eligibility is based on the income a property generates, not the borrower’s personal income. Utah lenders use rent rolls, short-term rental history, or market rent appraisals to estimate monthly income. That figure is compared to annual loan obligations to calculate the DSCR. A minimum ratio of 1.00 is generally required for approval. DSCR loans in Utah are ideal for self-employed investors and STR operators. Understanding how rental income is evaluated in Utah gives borrowers an efficient way to secure funding without relying on W-2s or tax returns.
What’s the minimum debt service coverage ratio required for approval?
Utah lenders typically require a DSCR of at least 1.00 for approval, indicating the property can support its annual debt service. Some Utah lenders may consider DSCRs down to 0.75, but that generally applies only to low-risk deals with strong borrowers. A 1.25 DSCR is often preferred in Utah, especially in fast-moving markets like Salt Lake City, Provo, or St. George. DSCR loans in Utah are ideal for portfolio builders who want to qualify without personal income. Understanding Utah’s DSCR minimums ensures you structure a property deal lenders will view favorably.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. In Utah, DSCR loans allow borrowers to skip personal income verification and qualify based on property performance. Whether you're investing in Salt Lake City or Provo, Utah investors gain speed and flexibility by using this income-based approach. DSCR financing in Utah is built for rapid portfolio expansion.
